Rivian IPO edges closer with new SEC filing

Rivian’s first product, the 2022 R1T full-size pickup, is now in production and initial impressions, including from us, are positive.

That should bode well for the company’s efforts to raise additional funds by launching an initial public offering, a filing for which was made with the Securities and Exchange Commission last week.

The filing discloses key financial data for investors, as well as opportunities and risks. It reveals that the company has been burning through serious cash as it ramped up for September’s start of production of the R1T, with losses for the first half of 2021 coming in at $994 million, which was almost the total amount the company lost in 2020 and about double what it lost in 2019.

Rivian builds first customer example of R1T – September 2021

Most of the costs were associated with R&D spending, and this churn is set to continue through the end of 2023. The company expects its losses to total about $8 billion by that date, as it looks to expand its production capacity, including battery production, and add new models. The filing revealed that Rivian, after the U.S., will focus on expanding to Western Europe before expanding to Asia.

Rivian also revealed in the filing that it has 48,390 pre-orders for the R1T and the related R1S SUV. Those pre-orders aren’t binding so the number converted to firm orders could be less.

The actual size and price range for the IPO wasn’t announced. Previous reports point to Rivian looking to raise up to $8 billion and seeking a market valuation of up to $80 billion.

Rivian R1S

A conventional IPO would be unusual for an EV startup, as most have opted for the quicker route of going public through so-called “reverse mergers” with special purpose acquisition company (SPAC) shell corporations.

Rivian has already raised $10.5 billion since 2019, including $2.5 billion in a funding round completed in July. Backers include Ford and Amazon, which also have deals with Rivian for vehicle-development programs.

Amazon has commissioned Rivian to build 100,000 electric delivery vans. A handful of vans were delivered earlier this year, and Amazon hopes to have the full fleet operational by 2030.
Ford has said it will use Rivian’s skateboard platform for an unspecified future EV. Rivian was also set to build a Lincoln EV at its Illinois factory, but that project was canceled in April 2020 as the coronavirus pandemic took hold.